De La Guerre v Ronald Bobroff & Partners Inc and Others (22645/2011) [2013] ZAGPPHC 33 (13 February 2013)

De La Guerre v Ronald Bobroff & Partners Inc and Others (22645/2011) [2013] ZAGPPHC 33 (13 February 2013)

The court found that the contingency fee agreement between the applicant and the first respondent did not comply with the Contingency Fees Act 66 of 1997 and was therefore invalid. The Act is exhaustive regarding contingency fee agreements between attorneys and clients, and any agreement outside its provisions is unlawful. The first respondent, an experienced practitioner, should have known the requirements and the prevailing legal view. The applicant is entitled to a refund of the difference between the amount charged under the invalid agreement and the lawful fee, as well as a detailed bill of costs for taxation. The first respondent's conduct warranted a punitive costs order to express...

Citation
[2013] ZAGPPHC 33
Parties
Applicant: Juanne Elize De La Guerre; Respondent: Ronald Bobroff & Partners Inc; Respondent: Law Society of the Northern Provinces; Respondent: Road Accident Fund
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 February 2013
Case Number
22645/2011
Procedural Posture
Review Application / Judgment After Application for Declaratory Relief and Costs
Outcome
Application granted. The contingency fee agreement is declared invalid. The first respondent is ordered to deliver a bill of costs and refund the applicant the difference between the amount charged and the lawful fee. Punitive costs order granted.
Judges
Fabricius, Mlambo, Kathree-Setiloane
Legal Topics
Contingency Fee Agreements, Attorney Client Fees, Invalid Contract, Punitive Costs, Access to Justice
Civil Procedure Commercial and Corporate Contingency Fee Agreements Attorney Client Fees Invalid Contract Punitive Costs Access to Justice

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Parties

Juanne Elize De La Guerre

Applicant

Ronald Bobroff & Partners Inc

Respondent

Law Society of the Northern Provinces

Respondent

Road Accident Fund

Respondent

Procedural Posture

Review Application / Judgment After Application for Declaratory Relief and Costs

Legal Issues

  1. 1 Whether the 'Percentage Contingency Fee Agreement' between the applicant and the first respondent is valid under South African law.
  2. 2 Whether the agreement complies with the Contingency Fees Act 66 of 1997.
  3. 3 Whether the applicant is entitled to a refund of fees charged under the invalid agreement.

Ratio Decidendi

The court found that the contingency fee agreement between the applicant and the first respondent did not comply with the Contingency Fees Act 66 of 1997 and was therefore invalid. The Act is exhaustive regarding contingency fee agreements between attorneys and clients, and any agreement outside its provisions is unlawful. The first respondent, an experienced practitioner, should have known the requirements and the prevailing legal view. The applicant is entitled to a refund of the difference between the amount charged under the invalid agreement and the lawful fee, as well as a detailed bill of costs for taxation. The first respondent's conduct warranted a punitive costs order to express...

Court Disposition

Application granted. The contingency fee agreement is declared invalid. The first respondent is ordered to deliver a bill of costs and refund the applicant the difference between the amount charged and the lawful fee. Punitive costs order granted.

Orders

  • The 'Percentage Contingency Fee Agreement' between the applicant and the first respondent is declared invalid, void and of no force or effect.
  • The first respondent must deliver to the applicant, within 30 days of this judgment, a fully itemized and detailed bill of costs, supported by vouchers, reflecting reasonable fees and disbursements incurred.